Definition : Also known as Income statement, is a financial statement which shows expenses and revenue of a company during a particular period, usually a fiscal quarter or year. Read : What Is Balance Sheet ?
Income Statement helps to convey the status of a company i.e. Company is making profit or suffering losses. It is very important to read Income Statement of a company before investing, both of recent and past years. Note :Revenue : Total amount received from sales of goods and services. Expenses : Total amount spend in producing final product or service. Structure of P&L Statement
Income Statement is divided into Five main section - Net sales, Cost of Goods Sold, Gross Margin, Operating Expenses and Net Profit Before & After Income Tax (Or Net Loss in case of Loss). Net Sales : It is the sum of Gross sales excluding its returns, allowances and discounts.Cost Of Goods Sold : Amount of money used to produce the final product. For example cost of inventory, merchandise purchased…

3 Key Elements Of Investing By Benjamin Graham

Benjamin Graham was a American Investor and economist, widely known as the ‘father of value Investing'. His work in managerial economics and investing has led to a modern wave of value investing within mutual funds, hedge funds, diversified holding companies and other investment vehicles. Warren Buffet describes him as the second most influential person in his life after his own father and he was also the teacher of Warren Buffet. He always follow and support Value Investing, and his three key elements of investing are as follows :

1. You must thoroughly analyze a company, and the soundness of its underlying business, before you buy its stock : Simply means to get a good research about where you are investing and how much you are investing. Research about the company’s data in which you want to invest in, take a good look to its market capitalization, dividends, P/E ratio, P/B ratio, etc. Also try to know the company's value of goods or services its provides, reaction of people towards the business, also do the technical analysis of the business. Also take a good look at 5 year graph of stock performance and also to its 52 week high/low price. It is very important to do a proper research before investing as it will make you a Intelligent Investor and protect you from losses.

2. You must deliberately protect yourself against serious losses : Always make a strategy before you invest, making strategy is equally important as analysing the business. Always prepare yourself for losses, everyone trade to gain profit but one always need to aware and prepare to suffer losses as it is a natural phenomenon of stock market. If you able to suffer losses or protect yourself from bear market then only you will understand how to make profits. Always look for opportunities and invest wisely.

3. You must aspire to ‘adequate’, not extraordinary, performance : Trading like a optimist is not bad but being over confident and motives to make huge profit in less time will only make you a loser unless you are one of seven lucky Gods. Think big but wisely, learn and plan then invest, always look for opportunities with high profit and try to trade for longer term. knowledge and

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Stock Analysis is a very important part of investing. Searching a value stock is not a easy job, it takes lots of effort and time to find a stock with good fundamentals and that can give good future gains. Analysis is used to predict future performance of a stock by properly analysing its present and historical data. We always need to aware of changes made by the companies, and also change in rules and regulations by government.

Stock analysis is very important if you are planning for long-term investment as you need to go through every fundamentals and accounting of a company including its management and future plans before investing. Every successful investor always suggest to analyse a stock both technically and fundamentally before investing, this will help you to reduce risk factor and increases greater probability of gaining good future gains. Analysis is the key of Intelligent Investor.
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Learn :Difference Between Trading And Investing
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Definition : Also known as Income statement, is a financial statement which shows expenses and revenue of a company during a particular period, usually a fiscal quarter or year. Read : What Is Balance Sheet ?
Income Statement helps to convey the status of a company i.e. Company is making profit or suffering losses. It is very important to read Income Statement of a company before investing, both of recent and past years. Note :Revenue : Total amount received from sales of goods and services. Expenses : Total amount spend in producing final product or service. Structure of P&L Statement
Income Statement is divided into Five main section - Net sales, Cost of Goods Sold, Gross Margin, Operating Expenses and Net Profit Before & After Income Tax (Or Net Loss in case of Loss). Net Sales : It is the sum of Gross sales excluding its returns, allowances and discounts.Cost Of Goods Sold : Amount of money used to produce the final product. For example cost of inventory, merchandise purchased…

For Stock Analysis you need to read the Balance Sheet of a company. But before reading balance sheet you need understand some basic terms related to balance sheet. Here, I will explain every term in basic language that make you understand very easily. Learn :What Is Balance Sheet ?DepreciationDefinition : It is the decline in the value of money or assets with time. Example : If you purchase a car at the price of one million. After 3 year that car will not remain with the same value. As time passes value of goods increases while of money decreases. Another example, Your grand father used to buy full bag of fruits and vegetables in just ₹100, but now days you will only get fee kilos of fruits and vegetables in ₹100. And this is what depreciation is.
Depreciation has exception. Price of Land or property(real state) which is a asset, always increases with time. Formula : Depreciation : cost - salvage value / no. of useful year Check Out :8 Steps For Quick Fundamental Analysis
Salvage Value …